Media subsidies ‘a defence of democracy’

Press, 29 June 1982, Page 17

Media subsidies ‘a defence of democracy’

Can newspapers keep their independence and stay varied and competitive if they are subsidised by the State? In most cases probably not, but Norway has proved the exception. The State-subsidised newspapers here are not only healthy, but the financial help received has enabled smallcirculation papers to progress and steer clear of monopoly take-overs. With four million people spread thinly over an elongated, rugged terrain, under heavy snow half the year, urban or rural dwellers have a choice of at least two dailypapers of opposing political views.

The subsidy measures were initially passed in 1969 by a Conservative-dominated Storting (parliament) after newspaper organisations had asked for temporary means to aid the media'.

The budget then was 7.6 million crowns: it increased to 230 million (about SNZ47 million) this year. Although constant demands have been made by Right-wing press groups to cut contributions, the subsidies are certainly here to stay. Seen in any context. Norway's press situation is unique. The capital, Oslo

(460.000 pop.), has nine dailies, either early- or midmorning papers that reach the far north — a distant equivalent to Cape ReingaSouth West Cape on Stewart Island — by the afternoon. Most of the nation’s 170 dailies, whether based in remote fiord or village and with meagre circulation, have computerised technology and print .in multicolours. State subsidies consist of: • The most important is a production subsidy, calculated on the paper’s space devoted to editorial material. It is given to papers with 2000 to 10,000 circulation, and to papers with 10,000 to 80.000 circulations published in a place that has two or more papers but have not the highest circulation in that place. • A joint distribution subsidy for papers which distribute by mail. This encourages co-operative distribution by rival papers. .

• A loan fund that grants loans and guarantees loans for new equipment.

• A telecommunications subsidy which equalises costs for line rentals. Wherever the paper is situated it pays the same amount as another paper for copy transmitted

from the Norwegian News Agency in Oslo.

• All papers are exempted from V.A.T. (20 per cent) on subscriptions or single copies sold. Another form of economic advantage for the press, although not a subsidy, is advertisements from the State — such as situations vacant in State departments, public information adverts. Last year. Norway's leading conservative paper “Aftenposten.” with a circulation of 225.000. printed State adverts worth $537,000. There is also State support for political, Lapp, and immigrant publications not belonging to the • daily press. Their circulation must exceed 500.

Political publications include those of the extreme Right, like Oslo's “Morgenbladet” (9400 circulation and a 1981 production subsidy of $273,000). but not those issuing blatant fascist propaganda. and of the far Left. The Marxist-Leninist daily “Klassekampen" . ("Class Struggle") of Oslo, with a 7600 circulation and a production subsidy of $202,000, attempted to survive without the main press subsidies from a matter of principle but soon had to call’on their

aid. Last year, the managing director of Norway’s main daily "Verdens Gang” (V.G.) started a controversy when he said it was unfortunate that papers got themselves into a situation where they had to seek and then receive press subsidies. The independent, conservative V.G. is a phenomenon in the Scandinavian press. Eighteen years ago it was on the verge of disaster, its circulation down to 36.000.

Today, relying on sensationalism and easy reading, good photography and layout, and a swift distribution to every corner of the nation, this popular tabloid sells 220,000 on weekdays, 332,000 on Saturdays, and increases its circulation by 13 per eent annually. The paper has offices all over Norway, also in Stockholm. Copenhagen, and NewYork, and a seven-bedroom house in London where a new correspondent arrives every three months, more or less for a vacation. Last December, V.G. had a man in New Zealand for the arrival of the Norwegian

From ROSS BROWN in Oslo

yacht in the Whitbread round-the-world race.

The technical personnel, all receiving equal basic pay, earn about $660 for a 40-hour week. This wage is roughly the same in other Oslo papers.

However, for starting on the early morning shift V.G.’s personnel get a free taxi to work and $5O for the first hour of 5 to 6 a.m. Photo-copy pages are pasted-up in the city offices, then scanned by a laser beam and sent by radiowaves to the printing plant 10km distant. Conditions for employers and employees include the use of five quality holiday cottages in the mountains, two cottages (and boats) by the sea, a cheap canteen, a gymnasium and sauna, with frequent lavish festivities, and fully-paid sporting trips for V.G.’s soccer, bowling, or running teams to other parts of Scandinavia. With a 1981 profit of $3.6 million. V.G. has no need of a production subsidy yet. but it benefits enormously from the V.A.T. exemption. Referring to the comments

of V.G.'s managing director, a columnist in a rival paper emphasised that it was not merely a matter of talent that saved a business, or a paper, from demise. “Capital is vital, and it doesn’t matter if it comes from a bank or a press subsidy.” he wrote. "When V.G. was ready to sink it was rescued. “Millions of crowns were dumped in the lap of the managing director by the concern that already owned a profitable daily." Press subsidy criticism, generally emanating from Conservative Party spokesmen, is often directed at the 45 papers of the Labour Party press- which has only 25 per cent of the total newspaper circulation yet gets 55 per cent of the State support.

In reply, Einar Olsen, director of the Labour Party press, said: “The total cost of press subsidies is the same as that of two F-16 fighters, and we should place equal value on both these forms of defending our democracy."

In Denmark, there are no selective press subsidies, and no marked competitiveness in the press outside Copenh2T°r*. The existence of "Ber-

lingske Tidende," the flagship of the Danish press and the world’s oldest - newspaper (founded in 1749), was only secured in April after a nailbiting economic rescue action when $5O million was raised by industrial and commercial groups a day before the paper was to be declared insolvent.

One-quarter of this amount will be used as a golden handshake to several linotypists and compositors when the firm obtains new technological equipment. By contrast, the introduction of computerised typesetting in Norway and Sweden has not resulted in the loss of one job. Indeed, V.G. now has more technical personnel than in the days of hot-metal setting.

Sweden has had elaborate State subsidies since 1969, worth $72 million this year. Swedes ’ are the most avid newspaper readers in the world. The total number of newspapers has decreased from 216 in 1945 to 150 today, but there has been a steady increase in the volume of circulation.

However, rising production costs and diminishing advertising revenue caused the

Swedish press to suffer in 1981. Only “Svenska Dagbladet” of Stockholm managed to build up its circulation, by 7000 issues to 200,000 daily. The largest-circulation paper, the liberal tabloid "Expression." lost daily sales of 14.500 but still impresses with its total of 518.000 each day.

“Stockholms-Tidningen." owned by the Trade Union Congress’ revived itself after an absence of 15 years and sold 45,000 copies daily. Swedish and Norwegian media commentators say it is inconceivable that the press subsidy system could be abolished without jeopardising vast numbers of newspapers — and jobs. State subsidies have reached the point of.no return. In Norway, the newspaper printing union fears that the present Conservative Government will repeal the law barring Sunday editions, dating back to the 1930 s when vendors insisted on a free Sunday, and the law against the publication of newspapers in the five-day Easter vacation. Overtime, or work on public holidays, is frowned upon by Norwegians.